Correlation Between Gogoro and Rose Hill

Can any of the company-specific risk be diversified away by investing in both Gogoro and Rose Hill at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gogoro and Rose Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gogoro Inc and Rose Hill Acquisition, you can compare the effects of market volatilities on Gogoro and Rose Hill and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gogoro with a short position of Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gogoro and Rose Hill.

Diversification Opportunities for Gogoro and Rose Hill

0.0

Correlation Coefficient

Gogoro  Rose Hill

Pay attention - limited upside

The 3 months correlation between Gogoro and Rose is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gogoro Inc and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition and Gogoro is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gogoro Inc are associated (or correlated) with Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of Gogoro i.e., Gogoro and Rose Hill go up and down completely randomly.

Pair Corralation between Gogoro and Rose Hill

If you would invest (100.00) in Rose Hill Acquisition on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Rose Hill Acquisition or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Gogoro Inc  vs.  Rose Hill Acquisition

Gogoro Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gogoro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Rose Hill Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rose Hill Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Rose Hill is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Gogoro and Rose Hill

The main advantage of trading using opposite Gogoro and Rose Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gogoro position performs unexpectedly, Rose Hill can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rose Hill will offset losses from the drop in Rose Hill's long position.

The idea behind Gogoro Inc and Rose Hill Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.